I 


ftcwi^' 


IRREGULAR 
«i»  CHECKS  ^ 


PROBLEMS  ARISING  IN 
THE  DAILY  ROUTINE 
OF  THE  AVERAGE 
BANK  ILLUSTRATED 
AND  EXPLAINED.  ^  ^ 


New  York 

AmcMcan  InstHiite  of  Bank  Cletks 

X904 


Charts  of  Bank  Organization  and  Administration^ 

THE  DAILY  WORK  OP  REPRESENTATIVE  BANKS  CLEARLY  SHOWN  IN  CHART  FORM. 

Different  departments  are  indexed  in  such  a  manner  that  the  course  of  any 
item  may  be  followed  from  its  receipt  to  final  disposition.  The  divisions 
of  the  work  and  responsibility  of  the  employees  are  graphically  set  forth. 
Price,  fifty  cents;  postpaid  to  any  address. 

The  Negotiable  Instruments*  Law* 

Pocket  edition,  fifty-two  pages,  flexible  cover,  containing  the  provisions  of 
the  law  as  enacted  in  twenty-one  States,  one  Territory  and  the  District  of 
Columbia.  Arranged  by  Thomas  B.  Paton,  of  the  New  York  Bar.  Price, 
fifty  cents;  postpaid  to  any  address. 

Irregular  Checks* 

A  series  of  checks,  irregular  as  to  face  or  indorsement,  arranged  by  the 
Seaboard  National  Bank  and  used  in  the  examinations  conducted  by  that 
institution.  Involving  questions  of  judgment  as  well  as  law  and  fact,  illus- 
trated in  facsimile,  with  explanation  of  the  irregularities  and  proper  treat- 
ment approved  by  the  Seaboard  National  Bank.  Price,  fifty  cents;  postpaid 
to  any  address. 

Bank  Catechism* 

THINGS  WHICH   EVERY  BANKER  OUGHT  TO  KNOW  ARRANGED  IN 
THE  FORM  OP  QUESTIONS  AND  ANSWERS. 

Forty  pages,  7x10,  substantial  binding — Regulations  of  National  Banks — 
Coin  and  currency — Problems  in  bank  arithmetic — Letters  of  credit — Ac- 
counts of  strangers — How  to  figure  profits  or  losses  on  accounts — Washing 
stocks — Studies  in  credits — Bank  employees.  By  William  Post.  Price,  fifty 
cents;  postpaid  to  any  address. 

Business  Organization  and  Administration* 

An  address  to  the  classes  in  Theoretical  and  Practical  Accounting,  School 
of  Commerce  Accounts  and  Finance,  New  York  University.  Describing 
and  discussing  the  various  essentials  of  successful  business  conduct,  the 
opportunities  for  young  men,  management,  methods,  responsibilities,  etc. 
By  A.  O.  Kittredge,  C.  P.  A,    Price,  fifty  cents;  postpaid  to  any  address. 


AMERICAN  INSTITUTE  OF  BANK  CLERKS, 


Twenty-five  Pine  Street,  New  York. 


PROBLEMS  ARISING  IN 
THE  DAILY  ROUTINE 
OF  THE  AVERAGE 
BANK  ILLUSTRATED 
AND  EXPLAINED.  ^  ^ 


New  York 

American  Institute  of  Bank  Cletks 

^904 


<\\ 


SPRECKEIS 


Account  Audit  Co.,  New  York. 


I 


IRREGULAR     CHECKS. 


I 


N  response  to  the  request  of  the  American  Institute  of  Bank  Clerks,  the  Sea- 
board National  Bank  of  New  York  has  furnished  for  publication  a  series  of 
irregular  checks  used  in  the  examinations  which  have  been  a  feature  of  this 
bank  for  several  years.  The  problems  involved  in  these  checks  are  matters 
of  judgment  quite  as  much  as  matters  of  law  and  fact.  The  development  of 
judgment  is  one  of  the  features  of  the  discipline  for  which  the  Seaboard  Bank  has  be- 
come noted. 

With  the  checks  the  officers  of  the  bank  have  supplied  answers  to  their  own  prob- 
lems. The  examinations  have,  up  to  the  present  time,  been  purely  a  matter  of  disci- 
pline within  the  bank.  The  officers  of  the  Seaboard,  however,  are  willing  to  furnish 
such  facilities  as  they  may  have  to  further  the  work  of  education  among  bank  em- 
ployees, and  at  the  request  of  the  Institute  submit  the  answers  following  as  their  per- 
sonal interpretation  of  the  problems  involved  in  the  checks  under  consideration.  It  is 
not  assumed  that  the  judgment  of  the  Seaboard  officials  is  any  better  than  the  judg- 
ment of  the  average  of  experienced  and  conservative  bankers.  The  solutions  of  the 
various  problems  contained  therein  are  given  from  what  the  Seaboard  Bank  considers 
the  standpoint  of  safe  and  conservative  banking,  coupled  with  the  desire  to  serve  the 
interest  of  customers  as  far  as  possible,  but,  of  course,  for  obvious  reasons,  cannot  in- 
dicate the  particular  discretion  that  would  be  used  in  each  individual  case. 

Under  the  Negotiable  Instrument  law  of  New  York,  which  governs  also  in  many 
other  States,  the  paying  bank  has  recourse  to  the  Clearing  House  Bank  to  which  it 
pays  the  money,  and  to  all  other  indorsers,  excepting  only  as  to  the  drawer's  signature, 
for  which  the  paying  bank  is  alone  responsible.  In  the  absence  of  restrictive  indorse- 
ments, the  collecting  bank  is  absolutely  liable  for  forgeries  and  all  irregularities,  even 
though  its  ordinary  Clearing  House  stamp  should  not  appear  on  the  check,  as  it  has 
been  held  that  the  fact  of  the  demand  and  acceptance  of  payment  by  a  bank  carries  with 
it  an  applied  warranty  of  the  genuineness  of  the  instrument  in  all  respects,  excepting,  as 
above  stated,  as  to  the  signature  of  the  drawer.  From  this  condition  of  the  law,  re- 
garding the  liability  of  indorsers,  it  may  be  seen  that  wide  discretion  may  be  used  by 
the  paying  bank  in  regard  to  irregular  indorsements.  Many  of  these  irregularities  will 
be  found  upon  examination  to  be  perfectly  innocent  and  would  not  in  any  way  invali- 
date the  instrument  in  which  they  appear. 

For  example,  in  check  No.  5,  Mary  Sharp  and  Mrs.  J.  O.  Sharp  are  in  all  prob- 
ability identical;  at  any  rate,  the  Second  National  Bank,  with  whom  she  negotiates  the 
check,  should  be  in  a  position  to  know  whether  or  not  she  is  Mrs.  J.  O.  Sharp,  and  it 
would  be  reasonably  safe  to  presume  that  they  knew  Mary  Sharp  to  be  the  person  for 
whom  the  money  was  intended.  The  paying  bank  has  to  consider  here  the  annoyance 
and  probable  inconvenience  to  which  the  wife  of  its  customer  will  be  subjected  by  a  re- 
turn of  the  check  for  this  apparent  irregularity  of  indorsement;  and,  as  regards  the 
amount,  they  will  consider  that  the  sum  involved  is  only  $3,  and  may  deem  it  best, 
perhaps,  if  the  larger  sum  were  demanded  to  pay  it  subject  to  adjustment  through  the 
indorsers,  or  through  the  maker.  And  so  on  through  the  list,  as  each  problem  is 
reached,  thoughtful  discretion  is  required  to  answer  properly  the  question,  "Should  this 
check  be  paid,"  this  matter  of  discretion,  of  course,  being  something  apart  from  and 
far  broader  in  its  scope  than  the  question  of  the  irregularities  of  the  various  checks 
under  examination,  which  irregularities  it  is  a  part  of  the  bank  clerk's  education  to  know 
how  to  detect  and  weigh. 


SPRECKEIS 

[4] 


CH:eCK  No.  I. 


Face. — First  National  Bank,  McGregor,  Texas:  Pay  to  the 
order  of  Steamer  Starboard  (,$2,000)  Two  Thousand  Dol- 
lars. James  Goat,  Cashier.  To  Seaboard  National  Bank, 
New  York  City.  Indorsement. — Pay  to  Jenkins  &  Co., 
Steamer  Starboard,  Jno.  McMaster,  Captain;  Pay  to 
Hooker,  Fur  &  Co.,  Jenkins  &  Co.,  Hooker,  Kerr  &  Co., 
i8th  National  Bank,  New  York. 

"Pay  to"  does  not  forbid  the  further  negotiation  of 
the  instrument,  and,  according  to  the  New  York  Ne- 
gotiable Instrument  law,  it  is  a  proper  indorsement. 
As  regards  the  indorsement,  "Steamer  Starbuck,  John 
McMaster,  Captain,"  the  question  arises  as  to  the 
authority  of  the  captain  to  indorse  for  the  steamer. 
My  understanding  of  the  law  is  that  the  captain  of  a 
vessel  in  a  foreign  port  has  full  authority  to  act  for 
the  owners.  It  is  customary  to  make  all  payments 
of  freight  to  the  master  or  captain  of  the  vessel  when 
in  a  foreign  port ;  if  he  were  in  his  home  port  it  would 
be  different,  as  the  agent  would  be  the  only  one  au- 
thorized to  indorse  for  the  steamer.  As  regards  the 
indorsement  "Hooker,  Kerr  &  Co.,"  for  "Hooker, 
Fur  &  Co.,"  the  same  is  irregular  on  its  face,  and 
should  either  be  corrected  by  Jenkins  &  Co.  to  read 
"Hooker,  Fur  &  Co.,"  or  a  guarantee  of  the  indorse- 
ment should  be  requested  of  the  Eighteenth  National 
Bank.  As  a  matter  of  law,  this  check  can  be  paid, 
and  recourse  can  be  had  to  the  Eighteenth  National 
Bank  for  all  irregularities,  as  there  are  no  restrictive 
indorsements  upon  it.  As  a  matter  of  custom,  how- 
ever, and  to  enable  previous  indorsers  to  protect 
themselves,  it  is  better  to  draw  attention  to  any 
irregularities  and  ask  for  guarantee  or  correction. 


J 


^-^^;i>^6Z^i^<^^c<y^ 


Check    No.    i. 


[6] 


CHECK  No.  2. 


Face. — The  Creston  National  Bank,  Dayton,  Ohio:  Pay 
to  the  order  of  Julien  Gorsuch  ($75)  Seventy-five  Dollars, 
in  full  for  all  claims  to  date.  J.  T.  Henley,  Cashier.  To  Sea- 
board National  Bank,  New  York,  N.  Y.  Indorsement. — 
Julien  Gorsuch,  Astor  National  Bank. 

This  check  may  be  paid,  and  the  bank  is  not  bound 
to  take  any  notice  of  the  clause  "in  full  for  all  claims 
to  date."  As  an  authority  puts  it :  "Any  points 
arising  out  of  it  are  between  the  maker  and  payee, 
and  it  may  be  said  that  the  weight  of  authority  is,  if 
the  check  so  written  is  in  payment  of  an  undisputed 
account,  that  it  does  not  operate  as  payment  unless 
the  check  is  for  the  full  amount  of  the  debt ;  while  if 
it  is  offered  in  payment  of  a  disputed  account  and  it 
is  retained,  it  operates  as  payment,  even  if  the  amount 
it  calls  for  is  less  than  the  amount  claimed ;"  and  that 
the  affixing  to  the  indorsement  of  the  name  of  the 
city  in  which  the  Astor  National  Bank  is  situated  is 
immaterial. 


[7] 


Check    No.    2. 


[8] 


CHECK  No.  3. 


Face. — The  Seaboard  National  Bank  of  New  York,  New 
York:  Pay  to  the  order  of  James  Bell,  Sec'y,  Twenty  Dol- 
lars (20),  Wilham  Henry,  Treasurer.  Indorsement. — Pay  to 
Frank  Jones,    Howard   Crawford,   President;   Frank  Jones. 

The  question  arises  as  to  whether  Howard  Craw- 
ford is  president  of  the  same  corporation  of  which 
James  Bell  is  secretary.  If  the  paying  bank  has  the 
means  of  knowing  that  Howard  Crawford  and  James 
Bell  are  authorized  officers  of  the  same  company,  or 
if  they  have  the  means  of  knowing  that  Howard 
Crawford,  president,  is  an  authorized  officer  of  the 
same  company  of  which  William  Henry  is  treasurer, 
they  should  pay  this  check,  although  there  is  an  ap- 
parent irregularity.  In  the  absence  of  any  knowl- 
edge, it  would  be  the  proper  thing  to  throw  the  check 
out  for  irregularity. 


[9] 


J^^^^:^^ 


/^^> 


/^Ui^t^^^^A 


^^^^U^( J(/?l^^ 


wf^^mi^m^mmi^  *:p' 


Check    No.    3. 


[lO] 


CHECK  No.  4. 


Face. — The  Seaboard  National  Bank,  New  York:  Pay  to 
the  order  of  Jos.  Hoskins  Five  Hundred  Dollars  ($500). 
J.  F.  Thomas.  Indorsement. — Pay  to  Seaboard  National 
Bank,  J.  F.  Thomas. 

This  indorsement  is  perfectly  reg^ular.  J.  F. 
Thomas,  being  the  maker  of  the  check,  cancels  his 
order  upon  the  face  of  the  check,  and  as  the  Seaboard 
National  Bank,  in  the  absence  of  acceptance  or  certi- 
fication, is  not  liable  to  the  payee,  the  bank  may, 
without  anv  risk,  act  on  the  maker's  indorsement. 


I 


[II] 


Check    No.    4. 


[12] 


CHECK  No.  5. 


Face. — The  Seaboard  National  Bank  of  the  City  of  New 
York,  New  York:  Pay  to  the  order  of  Mrs.  J.  O.  Sharp 
($98)  Ninety-five  Dollars.  J.  O.  Sharp.  Indorsement. — Pay 
to  2d  National  Bank,  Mary  Sharp;  6th  National  Bank,  New 
York. 

As  regards  the  amount :  The  writing  upon  the  check 
governs.  As  regards  the  indorsement  "Mary  Sharp," 
instead  of  Mrs.  J.  O.  Sharp:  If  Mary  Sharp  is  known 
to  the  paying  bank  to  be  the  wife  of  J.  O.  Sharp,  the 
indorsement  should  be  accepted.  If  such  fact  is  not 
known,  the  check  may  be  returned  for  irregularity,  or 
the  same  may  be  overlooked  and  the  paying  bank 
may  rely  upon  the  right  of  recourse  against  the  Sixth 
National  Bank.  As  before  stated,  as  a  matter  of  cus- 
tom, however,  and  to  enable  previous  indorsers  to 
protect  themselves,  it  is  better  to  draw  attention  to 
any  irregularities  and  ask  for  guarantee  or  correction. 


[13] 


Check    No.    5. 


[14] 


CHECK  No.  6. 


Face. — The  Seaboard  National  Bank.  i8  Broadway.  New 
York:  Pay  to  the  order  of  John  Doe  ($5)  Five  Dollars. 
John  F.  Jones.  Indorsement. — Pay  to  John  Smith,  John  Doe; 
Pay  to  1st  National  Bank.  New  York,  for  account  John 
Smith,  by  Jones;  ist  National  Bank,  New  York. 

This  check  is  regular,  with  the  exception  of  the  in- 
dorsement, "for  the  account  of  John  Smith,  by- 
Jones,"  which  is  a  dangerous  indorsement  to  handle 
without  special  guarantee  from  the  collecting  bank,  as 
it  forbids  recourse  to  the  First  National  Bank,  it  being 
under  this  indorsement  merely  an  agent,  and,  after 
having  paid  the  money  over  to  John  Smith,  it  could 
not  be  held  for  irregularities  of  indorsement,  raising 
o^  amount,  etc. 


[15] 


%. 


-^^ 


^^^^^, 


Ou,^ 


>%:^^^^^~ 


^^^ 


y>^>7^^ 


^a^ct^i 


) 


Check    No.   6. 


UNlVSiriSITY 

«      Of      - 


[i6] 


CHECK  No.  7. 


Face. — The  Seaboard  National  Bank,  of  the  City  of  New 
York:  Pay  to  the  order  of  James  Smith  ($80)  Eighty  Dol- 
lars. Harris  &  Jones.  Indorsement. — Pay -to  Rogers'  Ex- 
press, Jas.  Harris;  Rogers'  Express,  Jas.  Rogers,  Manager; 
James  Smith. 

Indorsement  "James  Smth,"  instead  of  "James 
Smith,"  we  assume  to  be  an  error,  and  a  safe  indorse- 
ment to  pay.  As  regards  the  indorsement  of  "James 
Rogers,  manager  for  Rogers'  Express,"  evidence  of 
authority  of  James  Rogers  should  be  required,  or  a 
guarantee  of  the  indorsement  by  a  responsible  party. 


[17] 


^;p/fe^^^^^^^;^^^:> 


Check    No.    7- 


[i8] 


CHECK  No.  8. 


Face. — The  Seaboard  National  Bank,  of  the  City  of  New 
York:  Pay  to  the  order  of  John  H.  Friday  and  W.  E.  Fri- 
day ($i,ooo)  One  Thousand  Dollars.  Wm.  Russel. 
Indorsement. — Jno.  H.  &  W.  E.  Friday;  Pay  to  John  Block 
or  order,  Jas.  Knight;  J.  Block,  National  City  Bank,  New 
York. 

This  check  is  not  payable  to  John  H.  &  W.  E. 
Friday  jointly,  but  to  each  individually,  and  should  be 
so  indorsed.  The  indorsement  of  "J.  Block"  is  not 
technically  correct.  J.  Block  might  be  John,  Joseph 
or  James  Block.  To  be  in  good  form  it  should  have 
been  indorsed  "John  Block."  The  check  being  for 
$i,ooo,  it  should,  as  a  matter  of  courtesy  to  the  col- 
lecting bank,  be  returned  to  them  for  guarantee. 


[19] 


Check    No.   8. 


[20] 


CHECK  No.  9. 


Face. — The  Seaboard  National  Bank,  of  the  City  of  New 
York:  Pay  to  the  order  of  John  Doe  Eight  Dollars  ($8). 
Jas.  Hoskins.  Indorsement. — Pay  to  James  Frank  for  collec- 
tion account  of  John  Doe;  Frank  James. 

In  the  first  place  the  indorsement  of  James  Frank 
is  missing^  and  should  be  supplied  before  paying  the 
check.  The  indorsement  of  John  Doe  being  restrict- 
ive, the  check  should  not  be  paid  unless  guaranteed 
by  the  Clearing  House  Bank. 


Oy^^dyOU<) 


Check    No.    9. 


[22] 


CH^CK  No.  10. 


Face. — The  Seaboard  National  Bank,  of  the  City  of  New 
York:  Pay  to  the  order  of  Trinity  Church  Seventy  (?) 
Dollars  ($70?).  Wilbur  Loomis.  Indorsement. — Pay  to 
Walter  Thompkins;  Frank  Taylor,  Trustee;  Walter 
Thompkins,  Frank  Jones,  S. 

It  is  impossible  to  ascertain,  either  from  the  fig-ures 
or  the  writing  what  is  the  correct  amount  of  this 
check,  and  in  the  absence  of  any  certification  of  the 
amount  by  the  maker  it  should  not  be  paid  in  the 
present  form,  although  it  may  be  paid  without  risk 
for  $20.  As  to  the  indorsement  of  "Frank  Taylor, 
Trustee,"  there  is  nothing  to  indicate  that  he  indorses 
on  behalf  of  Trinity  Church.  But  should  it  be  known 
that  he  was  a  trustee  of  Trinity  Church,  it  would 
be  necessary  to  know  that  he  had  authority  to  trans- 
fer moneys.  The  indorsement  of  Walter  Thompkins 
is  correct,  and,  being  in  blank,  would  make  the  check 
payable  to  bearer  in  case  the  previous  indorsement 
had  been  correct.  The  indorsement  "Frank  Jones, 
per  S.,"  is  immaterial. 


[23] 


(Zt^^ 


Check    No.    10. 


[24] 


CHBCK  No.  II. 


Face. — The  Seaboard  National  Bank,  of  the  City  of  New 
York:  Pay  to  the  order  of  United  Wire  Works  ($io)  Ten 
Dollars.  Jas.  Smith.  Indorsement. — Pay  to  the  ist  Na- 
tional Bank,  Brooklyn,  N.  Y. ;  United  Wire  Works,  John 
Smith,  part  owner;  ist  National  Bank,  New  York. 

The  indorsement,  United  Wire  Works,  by  John 
Smith,  part  owner,  does  not  indicate  anything  defin- 
ite as  to  the  character  of  the  United  Wire  Works.  It 
may  be  a  partnership,  joint  stock  company  or  cor- 
poration for  aught  that  appears  by  such  indorsement. 
The  indorsement  is,  therefore,  irregular,  and  accord- 
ing to  custom  it  should  be  returned  to  the  indorsers 
for  guarantee.  As  regards  the  indorsement  of  the 
First  National  Bank,  which  is  missing,  the  same 
should  be  called  to  the  attention  of  the  bank  present- 
ing the  same,  for  guarantee,  so  that  it  may  protect 
itself.  Of  course,  the  bank  on  which  the  paper  is 
drawn  may  rely  upon  its  right  of  recourse  against 
the  First  National  Bank,  which  is  the  last  indorser 
upon  the  paper  without  any  guarantee,  but  it  is  cus- 
tomary to  return  a  paper  of  this  kind  so  as  to  call  the 
irregularity  to  the  attention  of  the  last  indorser,  and 
give  it  an  opportunity  to  take  such  measures  for  its 
protection  as  it  may  see  fit. 


[25] 


Check    No.    ii. 


[26] 


CH:^CK  No.  13. 


Face. — The  Seaboard  National  Bank:  Pay  to  the  order  of 
Geo.  H.  Glen  Twenty  Dollars  ($40).  Jas.  H.  Shaw. 
Indorsement. — Pay  to  the  ist  National  Bank  for  Credit, 
Glen  Shoe  Company,  by  Geo.  H.  Glen;  for  deposit,  Peter 
Du  Bois;  ist  National  Bank. 

This  check  should  not  be  paid  for  more  than  $20, 
which  is  the  amount  given  in  the  body.  These  in- 
dorsements are  contradictory.  It  could  not  have  been 
for  the  credit  of  both  the  Glen  Shoe  Company  and 
Peter  Du  Bois.  It  should  be  returned  for  rectification 
and  the  guarantee  of  the  collecting  bank. 


[27] 


(Zc^  .^  /^;f^^(^/^ 


(j^€^ie^  //:U^^(^i^^^^ 


^<:>^>Zi^ 


/^/^^ 


^e^;^ 


r 


Check    No.    12. 


[28] 


CHECK  No.  13. 


Face. — The  Seaboard  National  Bank,  of  the  City  of  New 
York:  Pay  to  the  order  of  General  U.  S.  Freed  Three 
Thousand  Five  Hundred  Dollars  ($3,500).  H.  E.  Hamilton. 
Indorsement. — Pay  to  Fred  Dent,  U.  S.  Freed;  Harrison 
Blunt,  Frederick  Dent;  ist  National  Bank,  New  York. 

The  indorsement  "U.  S.  Freed"  is  perfectly  correct, 
as  the  title  is  not  necessary,  althoug^h  the  check  should 
not  be  paid  on  account  of  the  missing  indorsement 
of  Harrison  Blunt. 


[29] 


Check    No.    13. 


[30] 


CH^CK  No.  14. 


Face. — Pay  to  the  order  of  Bearer  Three  Hundred  Thirty- 
five  Dollars  ($335).  Acme  Soap  Company.  John  Gleason, 
Pt..  to  the  Seaboard  National  Bank,  New  York,  N.  Y. 
Indorsement. — William  Hitt;  Pay  to  the  order  of  Sam  Slick, 
F.  Meyer;  West  Side  Bank,  New  York. 

This  check  is  converted  into  an  order  check  by 
F.  Meyer,  and  a  cautious  banker  would  require  the 
indorsement  from  Sam  SHck. 


[31] 


r 


0^^^ -^^^C^d^Z^tk^^ 


<iZ<^<.<y 


<^^^^ 


^^M^'^^ 

^^^^u^^/^ 


Check    No.    14. 


[32] 


CHECK  No.  15. 


Face. — The  Seaboard  National  Bank,  of  the  City  of  New 
York:  Pay  to  the  order  of  James  Smith,  Treas.  ($20), 
Twenty  Dollars.  John  Straton.  Indorsement. — Pay  to 
Frank  Harris,  Smith  Mfg.  Co.,  Jas.  Bell,  Prest;  Pay  to 
John  Doe,  Frank  Harris,  by  Jones. 

The  indorsement  upon  this  check  is  entirely  irreg-- 
ular.  We  have  no  right  to  assume  that  there  is  any 
connection  between  Smith  Manufacturing  Company, 
James  Bell,  president,  and  James  Smith,  treasurer, 
the  payee.  The  indorsement  of  "Frank  Harris,  by 
Jones."  is  also  irregular.  As  regards  the  indorsement 
of  John  Doe :  Tt  is  entirely  missing  and  should  be  ob- 
tained before  paying. 


I  33  J 


Check    No.    15. 


[34] 


CHECK  No.  i6. 


Face. — The  Seaboard  National  Bank:  Pay  to  the  order  of 
Fletcher  Jones  ($3,000)  Three  Thousand  Dollars.  Justin 
Conklin.  Indorsement. — Pay  to  the  order  of  Saco  National 
Bank,  Fletcher  Jones;  Pay  to  the  order  of  ist  National 
Bank,  New  York;  Saco  National  Bank  without  recourse; 
1st  National  Bank,  N.  Y. 

The  only  peculiarity  about  the  paper  in  question  is 
the  indorsement  of  the  Saco  National  Bank,  "without 
recourse."  In  view  of  the  fact,  however,  that  the 
First  National  Bank,  of  New  York,  a  responsible  in- 
stitution, has  seen  fit  to  indorse  the  paper,  the  paper 
should  be  paid,  as  the  words  "without  recourse," 
added  to  the  indorsement  of  the  Saco  National  Bank, 
would  not  relieve  the  First  National  Bank  or  Fletcher 
Jones  of  responsibility. 


[35] 


^zZ,^^y, 


Tte^c^^ 


r 


/Chd^  Tt^^^/Qzc^/- 


-^f^^i^  y^^o//^^ 


/^ 


^^-<:^ 


Check    No.    i6. 


[36] 


CHECK  No.  17. 


Face. — The  Seaboard  National  Bank,  of  the  City  of  New 
York:  Pay  to  the  order  of  Jno.  F.  Aston  &  G.  H.  Aston 
($100)  One  Hundred  Dollars.  John  Davis.  Indorsement. — 
Jno.  F.  Aston  &  G.  H.  Aston;  Pay  to  Garfield  National 
Bank,  George  Henry;  Yorkville  Bank,  New  York. 

The  first  indorsement,  "J^o-  ^-  Aston,  G.  H. 
Aston,  by  Jno.  F.  Aston,"  is  entirely  irregular,  and 
should  be  returned  for  the  indorsement  of  each  indi- 
vidual. The  indorsement  of  the  Garfield  National 
Bank  is  also  missing,  and  the  check  should  be  re- 
turned before  paying. 


[37] 


Check    No.    17. 


[38] 


CHKCK  No.  i8. 


Face. — The  Seaboard  National  Bank,  of  the  City  of  New 
York:  Pay  to  the  order  of  Bradley  Supply  Company  ($80) 
Eighty  Dollars.  Sharp  &  Dowd.  Indorsement. — Bradley 
Supply  Co.;  Pay  to  Mrs.  Alice  Finlay,  John  Bradley,  Man- 
ager; Alice  Finlay;  Sharp  &  Dowd. 

This  is  a  proper  indorsement  if  so  written  by  an 
authorized  person.  But  if  such  indorsement  is  un- 
known to  the  paying  bank,  the  paper  should  only  be 
cashed  or  paid  upon  the  strength  of  a  responsible 
indorsement.  The  indorsement  of  "Alice  Finlay," 
without  prefixing  the  Mrs.,  is  immaterial;  otherwise 
the  check  is  regular. 


[39] 


uo 


^^^^.?^^^^ 


^^S^^^t^^  ;^^^^<:^i^.^ 


Z^^C(yz^  vX^^^-u^ 


Check    No.    i8. 


Cotintiry  Bank  Administra- 
tion and  Accounting 


BY 


NATHAN  A.  GIBBS 

7xtO  inches f  forty-eight  pages. — Copiously  illustrated ivith  chart s,  fac- 
similes of  book  pages  and  banking  forms, — Price,  $t.00 


The  author  has  had  long  and  active  experience  in  banking 
in  the  smaller  towns,  and  the  reader  is  at  once  impressed 
with  the  fact  that  the  book  is  based  on  actual  and  ac- 
curate knowledge  of  conditions.  The  working  of  each 
department  of  a  country  bank  is  described  in  detail  and 
profusely  illustrated.  The  subject  is  treated  under  the 
following  general  heads — The  Typical  Gauntry  Bank — 
The  President  —  The  Cashier  —  The  Assistant  Cashier — 
Classes  of  Depositors — The  Tellers — The  Teller's  Proof 
— Cash  and  Cash  Items — The  Discount  Books — The  Ex- 
change Book — The  General  Account  Bookkeeper — The 
Messenger  and  Janitor — A  System  for  Clearing  Checks 
— Clearing  Ticket — The  Morning  Settlement — The  Daily 
Settlement  Book,  etc. 

^  OF  THE 


I   ^j^^vri^fltX^ 


American  Institute  of  Bank  Clerks 

25  Pine  Street,  New  York 


The  A  B  C  of  Banks 
and  Banking 

By 

GEORGE  M.  COFFIN. 

S^x J  inches;  ijy  pages.    Bound  in  cloth.    Back  title  gilt.    Price,  $1.2^, 


This  handy  little  volume  is  exactly  what  its  name 
implies ;  that  is,  a  presentation  of  the  principles  un- 
derlying banking  in  the  United  States  and  has  been 
adopted  as  a  text  book  by  Yale,  Harvard,  Columbia 
and  other  prominent  Universities.  The  author  in  his 
preface  says  that  it  is  designed  to  appeal  to  the 
reader  outside  as  well  as  inside  of  a  bank.  It  is  by 
no  means  the  last  word  or  every  word  about  banking. 
It  may  be  said  that  it  is  a  primer  covering  a  field 
that  has  hitherto  been  somewhat  neglected.  The 
chapter  heads  are  as  follows :  Banking  in  General, 
Various  Kinds  of  Banking,  Capital  Stock,  Share- 
holders' Rights  and  Liabilities,  Undivided  Profits, 
Dividends  and  Surplus,  Deposits,  Checks,  Lawful 
Money  Reserve,  Issuing  Bank-notes,  Borrowing 
Money,  Loans  and  Discounts,  Exchanges,  Collec- 
tions, Letters  of  Credit,  Bonds,  Mortgages  and 
Stocks,  Bank  Reports,  Examinations,  Directors,  Ex- 
ecutive Officers — Their  Powers  and  Duties,  Internal 
Administration  and  Bookkeeping  and  other  sugges- 
tions. 


American  Institute  of  Bank  Clerks 

25  Pine  Street,  New  York  City. 


American  Institute  of  Bank  Clerks 

J.  B.  riNLBT.  Pretident         GIO.  F.  OKDE.  Vice-PfMident         JOBN  F.  TBOMPSON.  Tr«atQr«r         GEO.  E.  ALLEN.  SecrotMy 

Board  of  Trustees 

J.   B.  FINLEY,  Pittsburg,  Pa.,  President  Fifth  National  Bank 

GEORGE  F.  ORDE,  Chicago,  111.,  Cashier  Northern  Trust  Co.  Bank 
CLAY  HERRICK,  Cleveland,  Ohio,  Asst.  Treasurer  City  Trust  Co. 
ROBT.  J.   LOWRY,  Atlanta,  Ga.,  President  Lowry  National  Bank 

HARVEY  J.   HOLLISTER,  Grand  Rapids,  Mich.,  Vice-President  Old  National  Bank 
WALKER  HILL,  St.  Louis,  Mo.,  President  American  Exchange  Bank 

JOHN  F.   THOMPSON,  New  York,  N.  Y.,  Vice-President  Bankers'  Trust  Co. 

JOSEPH  CHAPMAN,  Jr.,  Minneapolis,  Minn.,  Cashier  Northwestern  Nat.  BanJ[ 
C.   B.   MILLS,  Clinton,  Iowa,  Cashier  Peoples'  Trust  and  Savings  Bank 


T 


I 


HE  Institute  was  founded  in  1900  by  the  American  Bankers 
Association.  Its  object  is  to  furnish  banking  education  to 
bankers,  bank  employees,  and  others  interested  in  banking 

STANDARD   EXAMINATIONS 

FOR 

Certificates  of  Proficiency 

may  be  considered  the  crowning  point  of  the  work  of  the  Institute.  The  Standard  Examinations  are  held  annually  at 
convenient  points  throughout  the  country.  The  subjects  in  which  applicants  are  examined  are  Arithmetic,  Bookkeeping, 
Practical  Banking,  Commercial  Law  and  Political  Economy.  The  examiners  are  men  of  the  highest  reputation  and 
ability  from  the  principal  universities  of  the  country.  The  work  of  the  Institute,  to  furnish  the  best  banking  education  to  every 
one  interested  and  to  thoroughly  equip  those  desiring  to  pass  the  Standard  Examinations,  is  conducted  along  four  distinct 
but  inter-dependent  lines.  Without  regard  to  relative  importance,  for  each  serves  to  supplement  the  others,  they  may  be 
described  in  the  following  order: — 

Chantattqua  Readinil  Courses — To  aid  students  in  the  work  of  preparation  for  the  Standard  Examinations,  the  Institute 
has  arranged  Chautauqua  Reading  Courses  in  Practical  Banking,  Commercial  Law  and  Political  Economy.  The  Chautauqua 
Courses  serve  the  fiirther  purpose  of  offering  intelligent  suggestions  to  general  readers  of  banking  and  financial  literaturt 
who  do  not  desire  to  submit  to  examination. 

Chapters  of  the  Institute,  for  those  in  communities  of  sufficient  size  to  afFord  co-operative  educational  effort.  Chapter  j 
work  consists  of  debates,  discussions  and  competitions  in  bank  routine,  by  the  members,  and  lectures  by  specialists,  all  I 
under  the  supervision  of  the  Institute. 

Correspondence  School  of  Banking,  a  system  of  direct  instruction  by  mail,  suited  to  individual  needs,  accompani^ 
step  by  step  by  exhaustive  examinations,  demonstrating  the  information  acquired.  Its  object  is  to  prepare  students  for  tf 
Standard  Examinations  of  the  Institute  and  also  to  supply  instruction  to  remedy  defects  in  early  education,  and  round  (A 
intellectual  attainments. 

The  Bulletin  of  the  Institute,  the  official  medium  of  inter-communication  between  the  Institute  and  its  members  of  I 
classes.  It  publishes  articles  of  educational  value  on  banking  and  fiinancial  subjects  by  eminent  authorities,  and  practic 
articles  on  banking  methods,  by  the  chapter  members  and  students. 

Specific  information  in  regard  to  any  division  of  the  Institute  work  will  be  furnished  on  application  to 


American  Institute  of  Bp^i^^eHCs,  25  Pine  St.,  New  Yorl 


OVERDUE.  ^== 


YD  09185 


Pf 


^/ 


1X64^.0 


